Part 1

Billy Bats, Inc. manufactures aluminum baseball bats that it sells to university athletic departments. It has developed the following per unit standard costs for 2018 for each baseball bat:

Direct Materials Direct Labor

Standard quantity 2 pounds (Aluminum) hour

Standard price $4.00 $10.00

Unit standard cost $8.00 $5.00

In 2018, the company planned to produce 80,000 baseball bats at a level of 40,000 hours of direct labor. Actual results for 2018 are presented below:

1. Direct materials purchased were 164,000 pounds of aluminum that cost $688,800.

2. Direct materials used were 146,000 pounds of aluminum.

3. Direct labor costs were $374,400 for 39,000 direct labor hours actually worked.

4. Actual production was 76,000 baseball bats.

Instructions

Compute the following variances:

1. Direct materials price.

2. Direct materials quantity.

3. Direct labor price.

4. Direct labor quantity.

Part 2

Party Time Inc. needs your help to create some of its budgets for the year. All of the firms party favor boxes include 6 gold coins, regardless of the party boxs theme. Its sales budget for its all of its various party favor boxes combined is as follows:

Party Time Inc.

Sales Budget

For the Year Ended Dec. 31, 2018

			(Weddings!)	(Chritmas!)
	Q1	Q2	Q3	Q4	Yearly Totals
Budgeted Unit sales	11,000	12, 300	14,000	13,600	50, 900
Budgeted Sales Price	$ 5.50	$ 5.50	$ 5.50	$ 5.50	$ 5.50
Budgeted Sales Revenue	$ 60,500	$67,650	$ 77,000	$ 74,800	$ 279, 950

Party Time Inc. maintains ending finished goods inventory equal to 8% of the budgeted sales for the next quarter. At the end of the year, Party Time Inc. would like to have 750 finished boxes in its warehouse. In addition, Party Time Inc. maintains enough gold coins on hand to start each quarter with 5% of the current quarters production needs. The firm wants to end Q4 of the coming year with 3,200 coins on hand.

5) Complete the Production Budget for Party Time Inc. Show your work!

	Q1	Q2	Q3	Q4	Year Total
Budgeted Production in Units

6) Refer to prior page information. Complete Party Time Inc.s Raw Materials Purchases Budget for Gold Coins. (As shown on the Given Info. Sheet, each gold coin costs the firm $0.08 to purchase.) Show your work!

	Q1	Q2	Q3	Q4	Year Total
Budgeted Cost of RM Purchases

7) Using the information below, calculate Party Time Inc.'s total cash receipts for January, February, and March.

Of the 11,000 Pirate Treasure Chests (party favor boxes) expected to be sold in Q1, 3,000 boxes are expected to be sold in January, 3,500 in February, and 4,500 in March. Each box sells for $5.50, as reflected in the Sales Budget for the year. Sixty percent of the Party Time Inc.s sales are credit sales. Of the credit sales, 52 percent is collected in the month of the sale, 38 percent is collected during the following month, and 10 percent is collected in the second month following the sale. Assume that there were $4,000 of accounts receivable from last year's sales that will be collected in January.

	Jan.	Feb.	March
Total Cash Receipts (Cash Collected)

8) Using the information below, calculate Party Time Inc.'s cash payments for raw materials for January and February.

Of the raw materials to be purchased in Q1, 25,024 gold coins are to be purchased in January and 22,000 in February. Party Time Inc.'s supplier allows the firm to pay for 45% in the month of purchase and the remaining balance in the month following the purchase. Assume that there were $3,500 of accounts payable from last year's purchases of gold coins that will be paid in January.

	Jan.	Feb.	March
Total Cash Receipts (Cash Collected)

9) Looking ahead, assume the following for April & May Total expenses (including RM cash purchases) are expected to be $19,000 in April and $12,000 in May. Cash collections are expected to be $15,100 in April and $17,200 in May. Total expenses include $1,500 of depreciation expense each month, while all other expenses included are paid in cash. The beginning cash balance is $20,000 and the firm wishes to maintain a minimum cash balance of $20,000 each month in the coming year. Party Time borrows from its bank in increments of $2,500 in order to maintain its desired cash balance, and no interest is charged if a loan is repaid within one month. Calculate the ending cash balance for January and February using this information and the information from #8 above (the Cash Collection problem).

	April	May
Ending Cash Balance